The Cuban government has announced its plans to recognize and regulate cryptocurrencies such as Bitcoin for payments, citing the reason for the recognition is for socioeconomic interests.
According to recent reports, the central bank of the Caribbean nation is set to establish rules and regulations for adding crypto-assets into the mainstream, thereby accepting crypto payments in the country. The Cuban authorities are expected to provide the relevant licenses to crypto-based businesses in the country. Commercial providers are required to hold licenses from the central bank in order to continue their crypto-related operations in the country.
Struggling economies have started accepting Bitcoin ever since the cryptocurrency was first recognized as a legal tender in El Salvador. Cuba’s decision to accept decentralized virtual cash like El Salvador could help the country circumvent the sanctions imposed on the country by the U.S regime, which was toned up by former President Donald Trump, and currently extended upon by President Joe Biden. Cuba has turned into a pariah in the global economy due to the American embargo, by carefully regulating crypto assets the Caribbean nation may utilize the sector to suit its needs.
The Cuban government’s plan to recognize cryptocurrency as legal tender has been especially well-received by tech-savvy pollution in the country since the U.S embargo. Sending and receiving money between the United States and Cuba had come extremely difficult under the sanctions especially during former President Donald Trump’s regime, which had implemented stricter regulations. Last year, Western Union, a channel for remittances that had to operate in Cuba for more than two decades, closed all its locations amid the aggressive embargo dialled up by the Trump administration.
On the other hand, Nayib Bukele the President of El Salvador announced the construction of nationwide infrastructure to promote the adoption of Bitcoin. According to the Central American Bank for Economic Integration (CABEI), El Salvador’s adoption policy for Bitcoin can not only reduce the total cost of remittances but also revamp the overall landscape of remittances across Central America.
The executive president of CABEI, Dante Mossi claims it is in the establishment’s best interest to assist El Salvador in creating a technical framework for the adoption of Bitcoin. He believes that the country’s plans for Bitcoin could result in great financial inclusion and prove beneficial for all parties involved.